UBS raises TCS stock to 'buy', expects 17% upside

Analysts at UBS expect TCS to lead its peers in terms of revenue growth by 100-150 basis points (bps). "TCS is likely lead its peers with improvement in margins by FY25. We believe market is not pricing in company's lead to its peers in, given a dividend consensus," the brokerage firm said.

Some of the growth drivers include ramp-up large deals such as BSNL, NEST, Aviva, among others. Apart from that, revival in BFSI segment and cloud migration projects would also drive growth, analysts said.

Valuation-wise, TCS is at the lower end of its long-term trading premium versus peers, they said.

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Earlier, Elara Securities reiterated its "buy" call for TCS, with a target price of Rs 4,430. "We slightly raise FY25E EPS estimates 3-4 percent and roll-forward by a quarter.  We maintain bullish call as TCS offers best earnings stability among peers, supported by margin resilience, strong delivery engine, robust partnerships with hyperscalers and sturdy deal wins," the brokerage firm said.

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